T.C. Memo. 1999-301
UNITED STATES TAX COURT
CHESTER F. AND FAYE L. SIDELL, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 10489-98. Filed September 4, 1999.
Respondent recharacterized the income
petitioner husband received from the rental of
property to his wholly owned C corporation
from passive to nonpassive, pursuant to the
attribution rule of sec. 1.469-4(a), Income
Tax Regs., and the so-called self-rented
property rule contained in sec. 1.469-2(f)(6),
Income Tax Regs. As a consequence of this
recharacterization, petitioners were able
neither to reduce such rental income by losses
from other rental properties nor to use
certain rehabilitation credits.
1. Held: Pursuant to sec. 469(l),
I.R.C., the Secretary properly promulgated the
attribution and self-rented property rules.
The self-rented property rule (by virtue of
the attribution rule) is valid insofar as it
recharacterizes rental income received by a
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011